10 New Energy ETFs To Play Oil’s Rise

April 13, 2018

Oil Producers & Consumers In One

There’s nothing wrong with buying the old, established oil and energy ETFs to get exposure to the space. But ETFs like USO and XLE are far from the only choices investors have. In fact, just in the past year, there have been 10 launches of energy-related ETFs. Here we take a closer look at some of those.
 

Launch Date Fund Ticker
2/28/2018 NYSE Pickens Oil Response ETF BOON
1/18/2018 iPath Series B Bloomberg Energy Subindex Total Return ETN  JJEB
12/13/2017 American Energy Independence ETF USAI
9/15/2017 Credit Suisse AxelaTrader 3x Long Brent Crude Oil ETN  UBRT
9/15/2017 Credit Suisse AxelaTrader 3x Inverse Brent Crude Oil ETN  DBRT
7/20/2017 United States 3X Oil Fund USOU
7/20/2017 United States 3X Short Oil Fund USOD
6/13/2017 Cushing 30 MLP Index ETN PPLN
06/01/2017 Amplify YieldShares Oil Hedged MLP Income ETF  AMLX
4/26/2017 Credit Suisse X-Links Crude Oil Shares Covered Call ETN  USOI

 

The newest entrant is the NYSE Pickens Oil Response ETF (BOON), launched in February. BOON attempts to differentiate itself by holding not just shares of traditional energy producers, but stocks of companies from other industries that will benefit from growing energy supply and demand—such as large energy consumers and alternative energy companies.

BOON’s unique twist on the energy sector results in unusual holdings, such as vehicle maker Oshkosh, aluminum manufacturer Alcoa, gold miner Newmont Mining, solar company First Solar and conglomerate General Electric.

The inclusion of companies from both the supply and demand side of the oil market may result in a smoother ride for investors when compared with other energy ETFs, according to the issuer. BOON is up 5% since launching on Feb. 28.

Energy Futures Basket

Along with BOON, the only other energy product to launch in 2018 is the iPath Series B Bloomberg Energy Subindex Total Return ETN (JJEB). The ETN tracks an index of futures contracts on five energy commodities: natural gas, Brent, WTI, gasoline and diesel.

JJEB’s unique feature is that it holds futures contracts with two or three months until expiration, slightly longer than the typical front-month-tracking products.

Oil Trackers

In addition to JJEB, there are five futures-tracking ETPs that launched in the past 12 months, all of them focused on oil. Four of those are triple-leveraged products: the AxelaTrader 3x Long Brent Crude Oil ETN (UBRT), the AxelaTrader 3x Inverse Brent Crude Oil ETN (DBRT), the United States 3x Oil Fund (USOU) and the United States 3x Short Oil Fund (USOD).

 

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